Ministry of Communications Authorizes R$ 1.4 Billion in Debentures to Expand and Modernize Internet Access in 14 States and the Federal District

Escrito por Fabio Lucas Carvalho

Publicado em 28/04/2021 às 12:01

Foto: Banco de imagens

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Ministry of Communications Authorizes Issuance of Debentures to Modernize and Expand the Telecommunications Sector in Several States of the Federation

Yesterday (27), the Ministry of Communications (MCom) approved a project that releases R$1.4 billion in incentivized debentures that will benefit the telecommunications sector in 16 states and the Federal District. This measure aims to modernize and expand the sector in the country, providing access to the internet in a cheaper and faster way. The allocated resources will enable a significant modernization of internet and mobile network services in these states.

Action by the Ministry of Communications Should Enable Better Internet Access for Brazilians

The amount approved by the Ministry of Communications will be used to expand and modernize mobile networks in the states. It will also be used to implement mobile and fixed networks using 3G, 4G, and 5G technologies, improving internet access. As a result, the sector will provide higher quality services in the country.

”The goal of the project is to expand and modernize the data communication network to provide internet access services, voice for retail market segments, companies, and operators through the implementation of mobile and fixed networks with 3G, 4G, 5G, GPON, and MetroEthernet and IP/DWDM Backbone technologies, in addition to the implementation of transport networks, access networks, and network infrastructure.” Describes MCom.

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The Ministry of Communications, aiming to improve the telecommunications sector, approved a project that releases R$1.4 billion. Unfortunately, not all Brazilian states were benefited. Below is the alphabetical list of states directly benefited: Alagoas, Bahia, Ceará, Federal District, Espírito Santo, Goiás, Minas Gerais, Mato Grosso do Sul, Paraíba, Pernambuco, Paraná, Rio de Janeiro, Rio Grande do Norte, Rio Grande do Sul, Santa Catarina, Sergipe, and São Paulo.

Debentures, What Are They?

Debentures work as follows: it is a way to “lend” money to a company. However, these debentures are incentivized, meaning there is a reduction or even exemption from income tax. In addition to being a way to invest in public interest infrastructure, this comes from acquiring resources from private sources.

Incentivized debentures are a great alternative for investors, as they allow for tax savings. For the public sector, they are of great importance as they encourage private investment in infrastructure.

Ministry of Communications Authorizes R$ 1.4 Billion in Debentures to Expand and Modernize Internet Access in 14 States and the Federal District

Ministry of Communications Authorizes Issuance of Debentures to Modernize and Expand the Telecommunications Sector in Several States of the Federation

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Debentures, What Are They?

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Ministry of Communications Authorizes R$ 1.4 Billion in Debentures to Expand and Modernize Internet Access in 14 States and the Federal District

Ministry of Communications Authorizes Issuance of Debentures to Modernize and Expand the Telecommunications Sector in Several States of the Federation

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